Weekly Market Commentary: Buying in the Face of Greek Elections

With Greek Elections too close to call it was surprising to see markets close on a high. Market breadth showed also demonstrated strong gains in support of the market.

The Nasdaq Summation Index firmed up a swing low with stochastics deeply oversold and the MACD histogram climbing off a low.

It was a similar story for the NYSE Summation Index

The Bullish Percents were not so frothy, but there were still gains to be had.  The biggest strike against them is the neutral mid-position of stochastics.

The Nasdaq finished the week at 2,872 which is close enough to the swing high from early 2011. Will this mark a right-hand-shoulder of a larger bearish pattern? Bulls hold the advantage and a higher weekly close (Friday) would negate this.

The S&P also sits at an important juncture.  It closed on former channel support - turned resistance.  It has yet to challenge the early 2011 swing high, so channel resistance is the work-for-the-week.

The Russell 2000 had a quiet week.  It's some way from the 2011 swing high and channel support - turned resistance and has suffered in 2012 after a bright 2011. Probably won't find many takers this week.

While there are a number of potential bearish technical turning points to consider, plus Greek elections to spoil things, there should be enough carryover form last week to see this nascent rally continue.  Bulls certainly not lacking a wall-of-worry to climb!


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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com. I offer a range of stock trading strategies for global markets which can be Previewed for Free with delayed trade signals. You can also view the top-10 best trading strategies for the US, UK, Europe and Rest-of-the-World in the Trading Strategy Marketplace Leaderboard. The Leaderboard also supports advanced search capability so you can tailor your strategies to suit your individual requirements.

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